DThe fact that the Russian energy company Gazprom is reducing its natural gas deliveries through the Nord Stream 1 Baltic Sea pipeline to less than half is a warning signal from the point of view of the President of the Federal Network Agency, Klaus Müller. “Unfortunately, Russia is fueling uncertainty and driving up gas prices,” he told the Rheinische Post.
If Gazprom only delivered 40 percent through Nord Stream 1 for weeks, Germany would have a problem, said Müller: “That would make our situation significantly worse. We might be able to endure that over the summer, because the heating season is over. However, we now have to fill the storage tanks in order to survive the winter – also with Russian gas.” When asked whether he feared that Russia would be serious about stopping gas supplies, Müller said: “Up to now it was part of the Russian logic , wanting to continue selling gas to Germany. But we cannot rule anything out.”
Delivery volume reduced again
Gazprom had announced that from Thursday night only a maximum of 67 million cubic meters of natural gas would be pumped through the pipeline. This recent reduction means a throttling of around 60 percent within two days.
The state-owned company justified the step with delays in repair work. The Federal Network Agency was concerned and called Moscow’s actions “technically unjustifiable”.
Gazprom had already announced on Tuesday that it would reduce the previously planned daily volume by around 40 percent from 167 million to 100 million cubic meters of gas per day and pointed to delays in the repair of gas compressors.
The energy technology group Siemens Energy then announced that a gas turbine overhauled in Canada could not currently be returned from Montréal due to the Russian sanctions.
Habeck: It is still being saved
According to the assessment of Federal Minister of Economics Robert Habeck, Russia wants to cause unrest with the delivery cuts. “The justification given by the Russian side is simply pretended. It is obviously the strategy to unsettle and drive up prices,” said the Green politician. The quantities could currently be procured on the market, albeit at high prices. It is currently still being stored: “The security of supply is guaranteed.” The gas storage facilities in Germany were recently about 56 percent full.
For Germany, Nord Stream 1 is the main supply pipeline with Russian gas. The Yamal-Europe line, which runs through Poland, had previously not been filled. The transit of Russian gas through Ukraine is also reduced. Energy prices have increased as a result of the previous restrictions, among other things, because less gas flows from Russia to Europe overall.
Gas saving suggestions
It is important to save as much gas as possible in order to get through the next winter, said Bundesnetzagentur President Müller. “Tenancy law stipulates that the landlord must adjust the heating system during the heating period so that a minimum temperature of between 20 and 22 degrees Celsius is reached. The state could temporarily lower the heating requirements for landlords. We are discussing this with politicians,” he told the Rheinische Post.
Companies should be encouraged to save gas with bonuses. “We want to establish mechanisms to reward companies that voluntarily give up gas quotas with a premium. It is always better when adjustments are made via prices than via dirigiste specifications.”
The head of the network agency expects further increases in gas prices and substantial additional payments. “Gas prices for private households have already multiplied compared to the pre-war period. There can be a nasty surprise for tenants if high back payments are due. That can quickly be more than a thousand euros, shock waves will go through the country. Banks will ramp up their business with installment loans, ailing companies are threatened with bankruptcy.”
